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ERA Crosses Critical Technical Indicator

In trading on Monday, shares of ERA Group Inc entered into oversold territory, changing hands as low as $20.60 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100.

In trading on Monday, shares of ERA Group Inc ( ERA) entered into oversold territory, changing hands as low as $20.60 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

A bullish investor could look at ERA's 28.5 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.

Looking at a chart of one year performance (below), ERA's low point in its 52 week range is $19.34 per share, with $29.96 as the 52 week high point — that compares with a last trade of $20.82. ERA Group Inc shares are currently trading off about 0.9% on the day.

According to the ETF Finder at ETF Channel, ERA makes up 1.35% of the PowerShares DWA Energy Momentum Portfolio ETF ( PXI) which is trading lower by about 0.1% on the day Monday.